It’s Official! Wal-Mart has Acquired Jet.com for $3.3 billionChris
The long wait is over as it has now been established that Jet.com was acquired by Wal-Mart for $3 billion in cash as well as $300 million in stock. This news may as a surprise to some, but for most individuals it was definitely expected. The more shocking piece to this story is the fact that Jet just recently celebrated their one-year anniversary and CEO Marc Lore’s plan was to grow their business as much as possible over the next 4 years before even considering a buy-out. It is evident that Lore realized the challenge of becoming Amazon’s biggest rival was much more difficult than he imagined.
Although this wasn’t the future Lore had in mind, Wal-Mart intends to keep the successful entrepreneur for years to come, so he won’t be going anywhere. As a part of the deal, Lore will oversee both Jet.com and Walmart.com, and will report to Wal-Mart Chief Executive Doug McMillon. He’ll be able to continue his work and watch Jet grow even bigger than expected now that it is a part of such an established global business.
This acquisition came at a hefty price from Wal-Mart due to the fact that it’s online presence is lacking. On top of that, it hopes this will allow them to compete more aggressively for younger and more affluent customers. Unfortunately, Wal-Mart has failed to see it’s online business grow regardless of the fact that it invested big money in distribution centers and expanding services. They’re hopeful this will be the big move that gets them closer to Amazon, if not level with them. Now the only thing left to do is to wait and see how it pans out.